Strategic Minerals Plc is a minerals production and development company
Leigh Creek Copper Mine
Cobre Magnetite Stockpile
Redmoor Tin Tungsten
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The Redmoor Project
Registered in the UK and listed on the AIM market (AIM: SML) of the London Stock Exchange
The Company's strategy is to utilise cash flow from existing operations to fund overheads and thereby provide a base from which to build a diversified portfolio of cash generating high quality strategic minerals operations and near term mining projects in jurisdictions where returns are commensurate with risk.
Top 5 Investment Points
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Profitable Producing Operation Underpins Mining Project Developments
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Development Projects Focussed on Critical Minerals (Tin and Tungsten) and Copper (Vital to Electrification)
Top 5 Investment Points
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Lean Experienced Management with Significant Stake in Company
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Significant Upside Exposure on Both Development Projects
Top 5 Investment Points
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Dilution Restricted to Advancing Development Projects and not "Keeping the lights on"
Leigh Creek Copper Mine (LCCM)
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Highly profitable base case project
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Shovel ready with all government approvals in place
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Existing proven offtake agreement for all production
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Payback within two years of project commencement
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Significant Copper Sulphide potential
Cobre, Magnetite Stockpile Points
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Profitable Producing Operation
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Long Term Access to Stockpile
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Strong Relationship With Stockpile Owner
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Largely a Logistics Operation
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Exemplary Operation Record from Experienced Staff
The Redmoor Tungsten and Tin Project
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Globally Significant Source of Critical Minerals
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Stable, Mining Friendly Location
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Potential to Significantly Increase Resource through Exploration and Accessing Adjacent Mineral Rights
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Scoping Study Indicates Highly Profitable Existing Project (NPV circa USD $100m)
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Lean, Highly Trained Development Team
Company Overview
Strategic Minerals Plc is a AIM listed (AIM: SML) profitable operating minerals company actively developing projects tailored to materials expected to benefit from strong demand in the future.
The Company is currently undertaking three major spheres of operations. These are shown in this diagram in order of proximity to generating cash flows.
All projects are 100% owned by the Company
The Company intends utilising cash flow from Cobre's operations to fund overheads and assist fund its other development projects. Upon the expected, near term, commencement of cash flows from Leigh Creek Copper Mine, cash flows will be re-invested into the Company’s other projects.
The Company Number is 07440902 and its Registered and Office Address is 27/28 Eastcastle Street, London W1W 8DH.
Strategy
Maintain a balance of projects producing cash, near term cash and explorations assets and grow the Company’s value and share price by leveraging core cash flows from producing assets to develop resources projects that relate to metals expected to increase in demand and price. This is to be achieved through:
Operating Strategy - Self sufficient
As an operator of a magnetite tailings business in the US, the Company, unlike many of its peers, has an underlying cash flow. The SML Board has committed to ensuring that corporate overheads, required for a listed company, are maintained within this cash flow and that funds raised from any share issues are utilised to progress value accretive projects.
Investment Strategy– Three factor approach
The Company has an investment strategy aimed at adding shareholder value through investment in:
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Metal projects that are expected to benefit from significant demand and associated price increases (such as Copper and Tin).
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Projects that will develop additional income streams (short & medium term: Leigh Creek Copper Mine, longer term: Redmoor Tin and Tungsten Mine) that will diversify dependency on the Company’s magnetite tailings business.
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Critical Resources recognized as strategically important (such as Tungsten).
This three factor approach has been reflected in the Company’s current project portfolio.
In 2018, the Company acquired the Leigh Creek Copper Mine which, while currently not operating, is expected to be back in production 2021. Leigh Creek Copper Mine utilises a heap leaching approach to produce copper cement and has executed an offtake arrangement for its output. The Company is confident that both its thorough approach to recommencing production and higher copper prices will result in significant positive cashflows in the years to come.
The Company operates the Cobre magnetite stockpile operation in New Mexico, USA through its wholly owned subsidiary Southern Minerals Group Llc. This operation supplies Iron Ore Magnetite to customers in fertilizer, concrete and other industries. It is a profitable operation and a major source of cash flow. At the beginning of 2020, the stockpile holds over 700,000 tons. Access to the stockpile is on an annual renewal basis which has been given automatically on the past eight occasions.
Cornwall Resources Limited has acquired the rights, through an exploration licence and mining lease option arrangement, over a 23km2 area surrounding the Redmoor deposit in the Cornish tin-tungsten-copper mining district in the UK. The licence area had previously supported a number of historic tin-tungsten-copper mines and there are a number of operating open cut mines (china clay and tungsten) located in the region.
In May 2016, the Company entered into a joint venture arrangement with New Age Exploration Limited (“NAE”) which resulted in the Company acquiring, through ownership in a special purpose company Cornwall Resources Limited ("CRL"), 50% of the Redmoor tin/tungsten exploration project in Cornwall, England. Subsequently, the Company purchased NAE's shares in CRL which is now a wholly owned subsidiary of the Company.